Harbor Custom Development Inc has revealed top-line revenue growth of over 43% year-over-year in its first full year as a public company.
The real estate company, which is involved in all aspects of the land development cycle, said it had generated net sales of $72.4 million in the year to end December 31, 2021, compared to $50.4 million in 2020.
Harbor attributed the growth to increases in sales of entitled land of $20.6 million, sales of developed lots of $14.3 million, and fee build of $6.8 million, primarily offset by a decrease in home sales of $19.6 million.
READ: Harbor Custom Development posts record 4Q earnings as its ‘distinct’ business model gains momentum
Harbor saw net income of $8.9 million, or $0.43 per share, compared to a net loss of $3.8 million, or $0.84 loss per share a year prior.
The firm also posted strong 4Q results that saw it clock up $26.3 million in revenue during the three-month period to end December 2021, compared to $24.3 million in the year-ago quarter.
During the quarter, Harbor also swung to a profit of $5.6 million or $0.26 per share, compared to a net loss of $1.9 million or $0.34 per share in the same year ago period.
Harbor’s real estate assets at the end of 2021 were valued at $122.1 million, compared to $20.4 million in FY 2020.
The company is setting its 2022 revenue guidance at $160 million, with adjusted EBITDA, or or earnings before interest, taxes, depreciation, and amortization of approximately $20 million, driven by continued strength in the residential and multi-family housing markets and the momentum from our fourth quarter performance.
CEO Sterling Griffin told investors the company is “extremely pleased” with the team’s performance.
“The value of our unique and flexible business model was on full display during the year, and this enabled us to achieve top line growth of 43.6% on a year-over-year basis, while maintaining some of the highest margins in the industry,” Griffin said in a statement.
“The $8.9 million of net income in our first full year as a public company along with $14.9 million of Adjusted EBITDA were significant steps forward in validating our distinct business plan that is focused on monetizing our real estate assets at the most opportune time during the development cycle. The flexibility provided in our approach is unique to the industry and we believe will continue to lead to increased shareholder value.”
Griffin added that the group’s strong cash position and significant investment in real estate assets have positioned it for a “substantial year” in 2022.
Harbor is involved in land acquisition, entitlements, construction of project infrastructure, home building, marketing, sales, and management of various residential projects in Western Washington's Puget Sound region; Sacramento, California; Austin, Texas; and Punta Gorda, Florida.
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